LONDON: Oil slipped to around $102 a barrel on Thursday, partially reversing a sharp rise the previous day, with more volatility expected as traders await the European Central Bank meeting and developments on Ukraine.
Oil futures on both sides of the Atlantic have seen sharp swings, buffeted by moves in the dollar and hopes that the peace talks in Ukraine may help the demand outlook in Europe.
Brent crude for October delivery fell 80 cents to $101.97 a barrel by 0824 GMT.
Brent hit a 16-month low on Tuesday, before bouncing back $2.43 on Wednesday.
There are likely to be further such moves due to the lack of clarity on the situation in Ukraine and the prospects for economic growth, Olivier Jakob at Petromatrix in Zug said. "The (futures) price will be dependent on headlines, and it's hard to trade with much conviction which is why we are seeing such big moves," he said.
US crude was down 76 cents at $94.78 a barrel, after settling $2.66 higher on Wednesday.
Dollar moves have contributed to the sharp oil price swings. The US currency rose to a 14-month peak against a basket of currencies this week, but has since retreated.
A stronger greenback makes it more expensive for importing countries to buy dollar-denominated oil.
The dollar may get further direction after the ECB meeting when it will be revealed whether the ECB will actually deliver a fresh round of policy stimulus or simply lay the groundwork to act at a later date.
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